Share Incentive Plan - The company granted a total of 12,096,900 shares under the share incentive plan on November 13, 2023, which will not result in the issuance of new shares[2] - A total of 169,605,750 shares are available for grant under the share incentive plan, representing 9.33% of the company's issued shares as of the 2023 annual report date[4] - The share incentive plan aims to align the interests of the company's directors and employees with those of shareholders[2] - The share incentive plan allows for a maximum of 10% of the issued shares to be granted, equating to 181,702,650 shares[2] - The total number of shares granted to the five highest-paid individuals amounted to 1,618,800 shares[2] - The vesting period for the granted shares is from November 13, 2024, to November 13, 2026[2] Share Valuation - The fair value of the granted shares on the date of award was HKD 7.45 per share, with the closing prices being HKD 7.77 and HKD 7.45 on the respective dates[3] - The company did not purchase any incentive shares during the fiscal year ending December 31, 2023[3] Corporate Governance - The company’s board of directors includes six executive directors and three independent non-executive directors[5] - The announcement does not affect other information contained in the 2023 annual report, which remains accurate and unchanged[4]

Investment Rating - The report maintains a "Buy" rating for the company [4][9]. Core Views - The company reported a slight revenue increase of 3.9% year-on-year to 7.176 billion RMB in the first half of 2024, with net profit attributable to shareholders rising by 16.1% to 1.49 billion RMB, slightly exceeding expectations [2]. - The formulation segment, particularly the animal health and insulin products, showed strong sales performance, with revenues increasing by 25.7% and 11.3% respectively, despite a 1.5% decline in human antibiotic sales due to centralized procurement impacts [2]. - The intermediate and active pharmaceutical ingredient (API) segments also performed well, with revenues increasing by 25.4% and 1.2% respectively, indicating robust demand outside of human antibiotics [2]. - The company expects the animal health business to maintain rapid growth, with a projected CAGR of 18.6% from 2023 to 2026, while insulin revenue is expected to grow at a CAGR of 7.5% over the same period [2]. - The report adjusts revenue forecasts for 2024-2026 downwards by 5.4%, 4.8%, and 1.8% respectively, but raises net profit forecasts by 0.2%, 1.8%, and 4.2% for the same periods due to a decrease in sales expense ratios [3]. Summary by Sections Financial Performance - Total revenue for 2024E is projected at 14.445 billion RMB, with a growth rate of 5.1% [4]. - Net profit for 2024E is expected to reach 2.883 billion RMB, reflecting a growth rate of 6.8% [4]. - The earnings per share (EPS) for 2024E is estimated at 1.59 RMB, with a price-to-earnings (P/E) ratio of 5.3 [4]. Business Segments - The formulation segment's revenue is projected to be 4.883 billion RMB in 2024E, with a slight decline due to antibiotic sales [4]. - The intermediate segment is expected to generate 2.660 billion RMB in 2024E, benefiting from high demand for 6-APA [4]. - The API segment is forecasted to achieve 6.902 billion RMB in revenue for 2024E, with a stable growth outlook [4]. Valuation - The target price is set at 11.90 HKD, based on a rolling P/E of 6.5 times the 2025E earnings [3][5]. - The current market price is 9.21 HKD, indicating a potential upside of over 20% [5].

Financial Performance - Revenue increased by 3.9% to RMB 7,175,804 thousand compared to RMB 6,906,524 thousand in the same period last year[2] - EBITDA rose by 14.2% to RMB 2,231,943 thousand from RMB 1,953,790 thousand year-over-year[2] - Profit before tax grew by 18.0% to RMB 1,901,702 thousand compared to RMB 1,612,155 thousand in the previous year[2] - Net profit attributable to the company's owners increased by 16.1% to RMB 1,491,404 thousand from RMB 1,284,496 thousand[2] - Basic earnings per share rose by 16.1% to 82.08 RMB cents from 70.69 RMB cents[2] - Interim dividend per share increased by 33.3% to 16.0 RMB cents from 12.0 RMB cents[2] - Total revenue for the first half of 2024 reached RMB 7,175,804 thousand, a 3.9% increase from RMB 6,906,524 thousand in the same period last year[13][14] Revenue Breakdown by Product - Revenue from intermediate products increased to RMB 3,081,282 thousand, up 14.5% YoY from RMB 2,692,115 thousand[13][14] - Revenue from active pharmaceutical ingredients (API) rose to RMB 3,917,640 thousand, a 1.8% increase from RMB 3,849,116 thousand YoY[13][14] - Revenue from finished dosage products slightly decreased to RMB 2,397,777 thousand, down 1.6% from RMB 2,436,110 thousand YoY[13][14] Revenue Breakdown by Region - Revenue from China (including Hong Kong) grew to RMB 5,748,478 thousand, a 3.7% increase from RMB 5,544,083 thousand YoY[15] - Revenue from Europe decreased to RMB 411,566 thousand, down 4.6% from RMB 431,526 thousand YoY[15] - Revenue from India increased to RMB 376,958 thousand, up 13.6% from RMB 331,769 thousand YoY[15] Research and Development - Research and development expenses increased to RMB 446,800 thousand from RMB 338,678 thousand, reflecting a focus on innovation[4] - R&D expenditure increased significantly to RMB 446,800 thousand, up 31.9% from RMB 338,678 thousand YoY[13][14] Assets and Liquidity - Total assets increased to RMB 15,411,907 thousand from RMB 14,390,448 thousand, indicating growth in the company's asset base[5] - Cash and cash equivalents rose significantly to RMB 6,554,830 thousand from RMB 4,261,989 thousand, reflecting improved liquidity[5] - Total equity increased to RMB 13,573,883 thousand from RMB 12,747,618 thousand, showing growth in shareholder value[6] - The company's cash and bank balances increased to RMB 7,321,900,000 as of June 30, 2024, up from RMB 5,234,200,000 on December 31, 2023[42] - Total assets grew to RMB 22,826,100,000 as of June 30, 2024, compared to RMB 21,017,200,000 at the end of 2023[42] - Net current assets rose to RMB 7,733,500,000 as of June 30, 2024, from RMB 7,160,500,000 on December 31, 2023[42] - The company's net cash and bank balances after deducting bank borrowings and trade payables stood at RMB 3,265,100,000 as of June 30, 2024, up from RMB 1,755,500,000 at the end of 2023[42] - The company's current ratio was 2.04 as of June 30, 2024, slightly down from 2.08 on December 31, 2023[42] Debt and Borrowings - The company's interest-bearing borrowings increased to RMB 2,439,400,000 as of June 30, 2024, up from RMB 1,496,900,000 at the end of 2023[42] Government Subsidies and Foreign Exchange - Government subsidies surged to RMB 100,709 thousand, a 189.3% increase from RMB 34,809 thousand YoY[16] - Net foreign exchange gains decreased to RMB 30,773 thousand, down 39.3% from RMB 50,682 thousand YoY[18] Legal and Environmental Initiatives - The company is involved in a legal case seeking to recover RMB 340,000,000 from Chengdu Evergrande, with a partial judgment of RMB 136,300,000 awarded[45] - The company's Inner Mongolia subsidiary launched a salt separation and acid-base conversion project, expected to reduce solid waste by 6,600 tons annually and cut CO2 emissions by 45,000 tons[46] Strategic Focus - The company is focusing on consolidating core industry advantages and enhancing R&D innovation capabilities in response to China's healthcare reform[47] Employee Count - The company employs approximately 15,000 staff in Hong Kong and Mainland China, unchanged from December 31, 2023[44]

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 11.97, indicating a potential upside of 30.0% from the current price of HKD 9.21 [1][12]. Core Insights - The company has demonstrated rapid revenue growth, with a 2023 revenue of RMB 137.39 billion, representing a year-on-year increase of 21.2%. The net profit attributable to shareholders reached RMB 27 billion, up 70.9% year-on-year, and the dividend per share increased by 108% to RMB 0.52 [6][9]. - The company is focusing on the diabetes and weight management sectors, with significant progress in new product development. A new GLP-1/GIP/GCG triple receptor agonist has received clinical trial approval in the U.S. and is expected to enter the Chinese market soon [7][10]. - The company plans to continue increasing its R&D investment, which reached RMB 8.08 billion in 2022, a 36% increase from the previous year. The revenue projections for 2024-2026 are RMB 151 billion, RMB 160.3 billion, and RMB 169.7 billion, respectively [10][12]. Financial Summary - In 2023, the company reported a total revenue of RMB 137.39 billion, with a gross profit margin of 46.11% and a net profit margin of 19.66% [14]. - The company’s total assets amounted to RMB 210 billion, with a net asset value of RMB 127 billion. The earnings per share (EPS) for 2023 was RMB 1.49, with projections of RMB 1.58, RMB 1.70, and RMB 1.80 for 2024, 2025, and 2026, respectively [2][14]. - The company’s market capitalization is approximately HKD 167 billion, with a total share count of 1.817 billion shares [2].

欢迎各位投资者参加华安医药联合录影中举办的夏季现场策略会 本场是上市公司联邦之要的一个交流那么我们也是很荣幸的邀请到了公司领导艾尔莫总和我们进行一个交流和分享那今天的交流主要是分为公司介绍和QA两个环节那首先呢有请公司领导艾尔莫总用那个二十到三十分钟的时间对公司的一个经营情况最新的一个进展做一个讲解接下来我们把时间交给莫总 好的,谢谢刘总各位好,我是联邦指导的IR Mercy接下来我会为各位介绍一下集团2023年的一个整体的业绩情况以及2024年现在的一个最新的一个进展 诶 莫总您那边好像开了静音我们这边听不到您那边的那个声音诶 哈喽 现在可以了吗现在可以了 好的哦 好好好 不好意思那我重新开始吧好的好的嗯 各位小伙好,我是联邦之鸟的IR Mercy接下来呢,我会为各位去回顾一下我们2023年全年的一个业绩情况以及目前我们现在最新的各个板块的一个业务进展首先呢,我们简单的回顾一下2023年的业绩情况2023年呢 集团整体取得了非常令人满意的成绩其中营业额取得了同比超过20%的增长达到了人民币137亿元拥有人应价屹立同比大幅增长接近71%达到了人民币27亿元2023年度全年累计派息52分其中末期股息人民币每股2 ...

Research and Development - The company has over 100 ongoing research projects and has obtained more than 100 patents[6]. - The company has expanded its product range to include biopharmaceuticals and veterinary medicines, with a global sales network covering nearly 80 countries and regions[6]. - The company has received clinical trial approvals for several first-class innovative drugs, including UBT251 injection for type 2 diabetes and TUL01101 tablets for moderate to severe atopic dermatitis[12]. - Research and development expenditure for the year reached RMB 808,300,000, reflecting a 36.2% increase year-on-year[24]. - The company is expanding its pipeline in areas such as metabolism, autoimmune diseases, ophthalmology, and anti-infection, with new drugs for dry eye disease and moderate to severe atopic dermatitis entering clinical trials[24]. - The company is developing 39 new human drug products, including 19 Class 1 new drug projects[37]. - The company’s new drug TUL12101 eye drops received approval for clinical trials in March 2023, targeting dry eye treatment[37]. - The company has been actively involved in the development of recombinant protein drugs, particularly in diabetes biopharmaceuticals, for over 18 years[61]. Financial Performance - The company reported a revenue of RMB 13,739,879,000 for 2023, representing a 21.2% increase from RMB 11,334,262,000 in 2022[17]. - Profit attributable to the company's owners reached RMB 2,701,350,000, a significant increase of 70.9% compared to RMB 1,581,094,000 in the previous year[17]. - Basic earnings per share rose to RMB 148.67, up 71.1% from RMB 86.89 in 2022[17]. - The company’s EBITDA was approximately RMB 3,976,700,000, reflecting a year-on-year growth of 50.6%[32]. - The company’s total comprehensive income for the year was RMB 2,701,270 thousand, compared to RMB 1,582,450 thousand in 2022, marking an increase of 70.8%[129]. - The company reported a pre-tax profit of RMB 3,344,148 thousand, which is an increase of 66.5% from RMB 2,006,766 thousand in 2022[127]. - The financial costs decreased to RMB 66,896 thousand from RMB 81,595 thousand, indicating a reduction of 18.0%[127]. - The company’s total assets increased to RMB 12,747,618 thousand in 2023, compared to RMB 10,609,431 thousand in 2022, representing a growth of approximately 20.1%[134]. Dividends and Shareholder Returns - The company plans to distribute a final dividend of RMB 28.0 per share and a special dividend of RMB 12.0 per share, totaling an annual dividend of RMB 52.0 per share, which is an increase of 108.0% from RMB 25.0 in 2022[17]. - The company reported a proposed final dividend of RMB 0.28 per share and a special dividend of RMB 0.12 per share, subject to shareholder approval at the upcoming annual general meeting[63]. - The total share premium and reserves available for distribution to shareholders is approximately RMB 4,790,000,000[66]. Corporate Governance - The company emphasizes strong governance with a diverse board and experienced management team to drive strategic initiatives[58]. - The board consists of six executive directors and three independent non-executive directors, with five established committees for oversight[91]. - The company has adopted corporate governance practices in line with the Hong Kong Stock Exchange's requirements, ensuring high standards of governance[89]. - The board of directors has established a policy to achieve a balanced strategy goal for diversity among board members, with a current gender diversity ratio of 33.3% (3 out of 9 directors being female)[94]. - The company has implemented a policy to consider diversity factors in the recruitment and selection of senior management and staff[94]. Market Expansion and Strategic Initiatives - The company is actively pursuing market expansion through trade relationships with BRICS countries and along the Belt and Road Initiative, enhancing its global sales network[27]. - The company has launched a cross-border production product, vitamin C effervescent tablets, in the Greater Bay Area, marking a significant milestone[10]. - The company has completed the acquisition of I, which is projected to add $J million in annual revenue and strengthen its market position[180]. - Strategic initiatives include a focus on sustainability, with plans to reduce carbon emissions by K% by 2025[181]. Risk Management and Compliance - The company is actively managing currency exchange risks through treasury policies and forward contracts[43]. - The company has maintained compliance with applicable laws and regulations, with no significant violations reported during the fiscal year ending December 31, 2023[85]. - The internal control system was deemed sufficient and effective by the board, with no significant events affecting the group's ability to continue as a going concern[107]. Investor Relations - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of business performance and strategy[112]. - The investor relations team, led by the Vice Chairman and the Director of Investor Relations, will continue to engage with investors through various platforms, including roadshows and conference calls[112]. - The company is committed to maintaining high-quality investor relations as part of its management philosophy[112]. Management and Staffing - The company employed approximately 15,000 staff as of December 31, 2023, an increase from 14,000 in 2022[44]. - The executive team includes Mr. Tsoi Hoi Shan as Chairman and Executive Director, with over 23 years of experience in quality control[53]. - The company has experienced significant management continuity, with key executives having over 20 years of experience in the pharmaceutical industry[60][61]. Financial Reporting and Accounting Standards - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards and reflect a true and fair view of the group's financial position as of December 31, 2023[114]. - The company expects that the application of the revised Hong Kong Financial Reporting Standards will not have a significant impact on the consolidated financial statements in the foreseeable future[160]. - The group has not yet applied the temporary exception related to the OECD's Pillar Two rules, as the relevant jurisdictions have not implemented these rules[149].

联邦制药（3933 HK）| 2024 年 4 月 2 日 香港股市 | 医药 联邦制药（3933 HK） 2023 年盈利超越预期，未来将稳健增长 2023 年盈利超越预期 公司 2023 年营业收入同比增长 21.2%至 137.4 亿元（人民币，下同），略超我们预期。2023 年海外市场中间体与原料药的需求显著回升，国内市场需求也逐步回暖，公司中间体与原料 药业务收入分别同比上涨 44.9%与 23.7%至 23.2 亿元及 64.0 亿元。与此同时，由于动保业务 下半年从主要客户牧原股份获得更多订单等原因，公司制剂业务收入同比增加 10.2%至 50.2 亿元。由于中间体及原料药产品价格上涨等原因，公司毛利率从 43.8%提高至 46.1%。公司销 售费用率从 2022 年的 14.7%降低至 11.6%，导致股东净利润同比增加 70.9%至约 27.0 亿元， 超出预期 18.8%。 预计 2024-26E 收入将平稳增长 考虑到 2023 年收入略超预期，我们将 2024-25E 收入预测分别微升 0.05%、2.5%，预计 2023- 26E 收入 CAGR 为 6.9%，基于：1）随着国内医药 ...

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved a total revenue of 137.40 billion CNY in 2023, representing a year-on-year growth of 21.22%, while the net profit reached 27.01 billion CNY, up 70.85% year-on-year [4][7] - The intermediate and raw material drug segments showed strong performance, with revenue from intermediates and raw materials growing by 44.9% and 23.7% respectively [4][7] - The company has a rich pipeline in the diabetes field, with significant progress in GLP-1 products, including the submission of liraglutide injection for production and completion of Phase III clinical enrollment for semaglutide injection [12][14] Financial Performance - The company's revenue forecast for 2024-2026 is projected at 150.47 billion CNY, 158.06 billion CNY, and 165.92 billion CNY, with respective year-on-year growth rates of 9.40%, 5.04%, and 4.97% [4][17] - The net profit forecast for the same period is expected to be 28.70 billion CNY, 29.95 billion CNY, and 31.15 billion CNY, with year-on-year growth rates of 6.23%, 4.36%, and 4.00% [4][17] - The gross margin for 2023 was 46.11%, an increase of 2.27 percentage points, while the net margin was 19.66%, up 5.71 percentage points [9][10] Segment Performance - The formulation segment generated revenue of 50.24 billion CNY, with a growth of 10.2%, while the insulin series saw a decline of 4.93% to 11.18 billion CNY [4][7] - The antibiotic segment, including animal health products, achieved sales of 35.33 billion CNY, marking a growth of 15.3% [4][7] - The overseas business contributed 26.16 billion CNY in revenue, reflecting a growth of 10.3%, while domestic revenue reached 61.00 billion CNY, up 38.57% [4][7] Research and Development - The company has established a comprehensive coverage in the diabetes sector, with projects including degludec insulin injection and liraglutide injection [12][14] - Significant advancements in GLP-1 products were noted, with multiple clinical trials progressing and approvals being sought for various indications [12][14]

Financial Performance - Revenue for 2023 reached RMB 13,739,879,000, a 21.2% increase compared to 2022[2] - Net profit attributable to the company's owners surged by 70.9% to RMB 2,701,400,000[4] - The company's EBITDA rose by 50.6% to RMB 3,976,692,000 in 2023[2] - The company's pre-tax profit grew by 66.6% to RMB 3,344,148,000[2] - Revenue for 2023 reached RMB 13,739.879 million, a 21.2% increase from RMB 11,334.262 million in 2022[12] - Net profit for 2023 was RMB 2,700.845 million, up 70.8% from RMB 1,581.023 million in 2022[12] - Earnings per share for 2023 increased to RMB 148.67 cents, compared to RMB 86.89 cents in 2022[12] - Profit before tax for 2023 was RMB 3,344,148 thousand, up from RMB 2,006,766 thousand in 2022[22][24] - Revenue for the year ended December 31, 2023, was approximately RMB 13,739.9 million, an increase of 21.2% year-over-year[43] - EBITDA for the year was approximately RMB 3,976.7 million, up 50.6% year-over-year[43] - Net profit attributable to shareholders was RMB 2,701.4 million, a 70.9% increase year-over-year[43] R&D and Innovation - R&D investment increased by 36.2% to RMB 808,300,000 in 2023[5] - The company's GLP-1 drug UBT251 injection received clinical trial approvals in both China and the US[5] - Research and development costs rose to RMB 757,248 thousand in 2023, compared to RMB 593,598 thousand in 2022, reflecting increased investment in innovation[27] - The company invested RMB 808.3 million in R&D, a 36.2% increase year-over-year, with 39 new human drug products under development, including 19 Class 1 new drug projects[46] Global Expansion and Market Reach - The company's upstream products now cover nearly 80 countries and regions globally[6] - Revenue from China (including Hong Kong) increased to RMB 11,124,265 thousand in 2023, compared to RMB 8,962,740 thousand in 2022[25] - Revenue from Europe grew to RMB 783,732 thousand in 2023, up from RMB 631,282 thousand in 2022[25] - Revenue from India reached RMB 673,922 thousand in 2023, compared to RMB 556,336 thousand in 2022[25] - Revenue from South America increased to RMB 340,391 thousand in 2023, up from RMB 297,594 thousand in 2022[25] - Overseas sales of intermediate products and APIs reached RMB 2,615.6 million, accounting for 19.0% of total sales[44] Product Segments and Revenue Breakdown - Revenue from intermediate products increased to RMB 5,753,101 thousand in 2023, up from RMB 4,317,709 thousand in 2022[22][24] - Revenue from active pharmaceutical ingredients (API) rose to RMB 7,392,185 thousand in 2023, compared to RMB 6,044,904 thousand in 2022[22][24] - Revenue from finished dosage products grew to RMB 5,023,821 thousand in 2023, up from RMB 4,560,331 thousand in 2022[22][24] - Total revenue for 2023 reached RMB 13,739,879 thousand, a significant increase from RMB 11,334,262 thousand in 2022[22][24] - Intermediate products and active pharmaceutical ingredients (API) segments saw revenue increases of 33.2% and 22.3%, respectively, with profit increases of 116.0% and 102.7%[43] Capital and Asset Management - Total assets as of December 31, 2023, were RMB 14,390.448 million, up from RMB 11,946.598 million in 2022[13] - Non-current assets grew to RMB 7,229.979 million in 2023, compared to RMB 6,464.679 million in 2022[13] - Current assets increased to RMB 13,787.201 million in 2023, up from RMB 12,514.946 million in 2022[13] - The company's equity attributable to owners rose to RMB 12,734.778 million in 2023, from RMB 10,608.086 million in 2022[15] - The company invested RMB 1,143,439 thousand in property, plant, and equipment in 2023, a significant increase from RMB 701,986 thousand in 2022[34] - Trade receivables and bills receivable totaled RMB 6,314,480 thousand in 2023, up from RMB 4,911,704 thousand in 2022, with credit loss provisions of RMB 12,459 thousand for trade receivables[35] - The company typically offers trade customers a credit period of 45 to 120 days, with selected customers potentially receiving extended credit based on trade volume and historical settlement records[36] - The aging analysis of trade receivables shows that 0 to 30 days receivables amounted to RMB 920,770 thousand in 2023, down from RMB 1,026,413 thousand in 2022[37] - Trade payables and other payables totaled RMB 2,238,152 thousand in 2023, with supplier financing arrangements accounting for RMB 1,981,929 thousand[39] - Capital commitments for the acquisition of property, plant, and equipment amounted to RMB 989,055 thousand in 2023, up from RMB 355,691 thousand in 2022[40] - The company pledged assets worth RMB 22,440 thousand in property, plant, and equipment and RMB 972,249 thousand in bank deposits as collateral for bank credit in 2023[41] - The company's current assets increased to RMB 13,787,200,000 in 2023 from RMB 12,514,900,000 in 2022, with net current assets rising to RMB 7,160,500,000 from RMB 5,481,900,000[49] - The current ratio improved to 2.08 in 2023 compared to 1.78 in 2022[49] - Total assets grew to RMB 21,017,200,000 in 2023 from RMB 18,979,600,000 in 2022, while total liabilities decreased to RMB 8,269,600,000 from RMB 8,370,200,000[49] - Equity attributable to owners of the company increased to RMB 12,734,800,000 in 2023 from RMB 10,608,100,000 in 2022[49] - Net cash and bank balances after deducting borrowings and supplier financing arrangements stood at RMB 1,755,500,000 in 2023, up from RMB 1,394,600,000 in 2022[49] - The company held RMB 5,234.2 million in bank deposits, cash, and cash equivalents as of December 31, 2023[48] - The company's interest-bearing borrowings were RMB 1,496.9 million, all due within five years, with RMB 23.9 million in fixed-rate loans and RMB 1,473.0 million in floating-rate loans[48] Dividends and Shareholder Returns - The company's total dividend for 2023 increased by 108% to RMB 52 cents per share[2] - Dividends declared for 2023 totaled RMB 581,448 thousand, up from RMB 272,636 thousand in 2022, reflecting higher interim and special dividends[32] - The company proposed a final dividend of RMB 28 cents per share and a special dividend of RMB 12 cents per share for 2023, totaling RMB 726,811 thousand[32] Employee and Social Responsibility - The company added over 5,000 jobs in the past decade, contributing to social responsibility efforts[10] - The company launched a stock incentive plan in 2023 to align employee interests with corporate value[10] - The company is committed to green factory construction, supporting national carbon neutrality goals[10] - Employee costs, including salaries and benefits, rose to RMB 1,648,745 thousand in 2023, compared to RMB 1,397,006 thousand in 2022[31] - The company employed approximately 15,000 staff in Hong Kong and Mainland China as of December 31, 2023, compared to 14,000 in 2022[51] - The company granted a total of 12,096,900 reward shares to selected participants under the 2023 Share Award Scheme[52] Legal and Contingent Liabilities - The company won a lawsuit against Chengdu Evergrande, with the court ordering payment of approximately RMB 136,300,000, though the company has appealed the decision[53] - The company has no significant contingent liabilities as of December 31, 2023[52] Financial Costs and Taxation - Financial costs decreased to RMB 66,896 thousand in 2023 from RMB 81,595 thousand in 2022, primarily due to lower borrowing interest[28] - Tax expenses increased to RMB 643,303 thousand in 2023, up from RMB 425,743 thousand in 2022, mainly due to higher corporate income tax in China[29] - The company's financial costs decreased by 18.0% to RMB 66.9 million, with net cash and bank balances of RMB 1,755.5 million as of December 31, 2023[47] Other Income and Expenses - Other income increased to RMB 212,475 thousand in 2023, up from RMB 165,817 thousand in 2022, driven by higher bank interest income and subsidy income[26] - Depreciation of property, plant, and equipment increased to RMB 536,303 thousand in 2023 from RMB 521,834 thousand in 2022[31] Treasury and Risk Management - The company maintains a treasury policy to monitor and manage currency exchange rate risks, using forward contracts as needed[50] Production and Infrastructure - The company launched the construction of the Zhuhai Lianbang Gaolan Port API project in November 2023[7] - The company's animal health business experienced rapid growth, with new production bases under construction in Inner Mongolia and Zhuhai[9] - The company's new production base in Zhuhai Gaolan Port, with a total construction area of 120,000 square meters, began construction in November 2023, aiming to enhance the automation and scale of API production[44]

Financial Performance - Revenue for the six months ended June 30, 2023, reached RMB 6,906,524 thousand, a 33.3% increase from RMB 5,181,925 thousand in the same period of 2022[6] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 71.2% to RMB 1,953,790 thousand, compared to RMB 1,140,996 thousand in the previous year[6] - Profit before tax surged by 95.0% to RMB 1,612,155 thousand, up from RMB 826,954 thousand year-over-year[6] - Net profit attributable to the owners of the company was RMB 1,284,496 thousand, reflecting a 104.0% increase from RMB 629,517 thousand in the prior year[6] - Basic earnings per share rose by 104.6% to RMB 70.69, compared to RMB 34.55 in the same period last year[6] - Total comprehensive income for the period amounted to RMB 1,285,591 thousand, compared to RMB 631,731 thousand in the previous year[16] - The company reported a significant increase in other income, totaling RMB 92,491 thousand, compared to RMB 72,641 thousand in the prior year[16] - The company’s pre-tax profit for the six months ended June 30, 2023, was RMB 1,612,155 thousand, compared to RMB 826,954 thousand for the same period in 2022, indicating a growth of approximately 95.1%[43] - Bank interest income increased to RMB 51,432 thousand, up from RMB 29,512 thousand, representing a growth of 74.2% year-over-year[47] - Total other income reached RMB 92,491 thousand, compared to RMB 72,641 thousand in the previous year, marking a 27.2% increase[47] Dividends and Shareholder Returns - The interim dividend per share was increased by 140.0% to RMB 12.0, up from RMB 5.0 in the previous year[6] - The total dividends declared for the period included a final dividend of RMB 0.14 per share, amounting to RMB 254,384,000, and a special dividend of RMB 0.109021 per share, totaling RMB 109,021,000, resulting in total dividends of RMB 363,405,000 for 2023, up from RMB 181,757,000 in 2022[63] - The interim dividend declared for the six months ended June 30, 2023, was RMB 0.12 per share, totaling RMB 218,043,000, compared to RMB 0.05 per share and RMB 90,879,000 in 2022[64] Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 13,212,085 thousand, an increase of 5.6% from RMB 12,514,946 thousand as of December 31, 2022[18] - Non-current assets reached RMB 6,557,875 thousand, up from RMB 6,464,679 thousand, reflecting a growth of 1.4%[18] - Current liabilities increased to RMB 7,063,733 thousand from RMB 7,033,027 thousand, indicating a slight rise of 0.4%[19] - The net asset value stood at RMB 11,531,617 thousand, representing a 8.7% increase from RMB 10,609,431 thousand[19] - The total equity attributable to owners of the company was RMB 11,530,528 thousand, reflecting a growth of 8.7% from RMB 10,608,086 thousand[19] - The company reported cash and cash equivalents of RMB 4,744,842 thousand, showing a marginal increase from RMB 4,743,071 thousand[18] - The deferred tax liabilities rose to RMB 251,296 thousand from RMB 194,069 thousand, marking a significant increase of 29.5%[19] - The company’s goodwill remained stable at RMB 3,031 thousand, unchanged from the previous period[18] Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2023, was RMB 1,470,153 thousand, a significant increase from RMB 806,708 thousand in the same period of 2022, representing an increase of approximately 82%[25] - The company reported a net cash generated from operating activities of RMB 1,197,471 thousand for the first half of 2023, compared to RMB 659,552 thousand in the prior year, reflecting a growth of about 82%[25] - Cash used in investing activities amounted to RMB 381,558 thousand for the six months ended June 30, 2023, compared to RMB 125,527 thousand in the same period of 2022, indicating an increase in investment outflows[27] - The company recorded a significant increase in cash and cash equivalents at the end of the period, totaling RMB 4,744,842 thousand, up from RMB 4,037,956 thousand at the end of June 2022, marking an increase of approximately 17.5%[27] - The company incurred a financial cost of RMB 38,736 thousand in the first half of 2023, compared to RMB 21,802 thousand in the same period of 2022, representing an increase of about 77%[25] Revenue Breakdown - The revenue breakdown shows that the antibiotic products generated RMB 5,144,679 thousand, while insulin products contributed RMB 474,634 thousand for the six months ended June 30, 2023[38] - The revenue from the Chinese market (including Hong Kong) was RMB 5,544,083 thousand, up from RMB 4,129,014 thousand in the previous year, indicating a growth of about 34.4%[41] - The revenue from the Indian market increased to RMB 331,769 thousand in 2023 from RMB 204,031 thousand in 2022, marking a growth of approximately 62.5%[41] - The company’s total external customer revenue from Europe was RMB 431,526 thousand, up from RMB 308,533 thousand in the previous year, representing an increase of about 39.8%[41] - The segment revenue for intermediates was RMB 2,692,115 thousand, raw materials was RMB 3,849,116 thousand, and formulation products was RMB 2,436,110 thousand for the six months ended June 30, 2023[43] Research and Development - The company invested RMB 350,300,000 in drug research and development, a 44.4% increase year-on-year[103] - The company has 34 new human drug products in development, including 16 first-class new drugs[103] - The company is actively pursuing new drug research and development, aiming to enhance its industrialization capabilities and accelerate the commercialization process[112] Corporate Governance and Shareholder Engagement - The company has adopted high standards of corporate governance to protect shareholder interests and enhance group performance[126] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2023[129] - The board expresses gratitude to shareholders and partners for their support during the first half of 2023[131] Legal and Regulatory Matters - The company is awaiting a judgment from the Chengdu Intermediate People's Court regarding a lawsuit to recover approximately RMB 340,000,000 from Chengdu Evergrande[110] Employee and Director Compensation - Total employee costs, including director remuneration, rose to RMB 769,768 thousand, compared to RMB 642,765 thousand, an increase of 19.8%[59] - The total remuneration for directors for the six months ended June 30, 2023, was RMB 9,630,000, compared to RMB 9,242,000 for the same period in 2022[90]